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The fact such an organization is recommending higher taxes for corporations and the wealthy shows how bad inequality has become.

Ottawa (12 May 2014) — A new report from the Organization for Economic Co-operation and Development (OECD) makes it clear that we cannot reduce income inequality without the wealthy paying more tax. According to the OECD, tax cuts for the wealthy and corporations have contributed to the increase in income inequality over the last 30 years.

Tax cuts for the wealthy and corporations worsen income inequality

The report also makes it clear that inequality is a growing problem in Canada. In Canada, 37 per cent of income growth in the period studied when to the wealthiest one per cent of Canadians. Only the United States, where the wealthiest one per cent received 47 per cent of income growth, was worse.

Among the changes to the tax system that the OECD identifies as contributing to income inequality are cutting income tax rates for high income earners and corporations, and taxing dividends and capital gains at a lower rate than wages and salaries. Both of these happened in Canada.

OCED report exposes two of the myths about income inequality

The first myth is that income inequality isn't a problem in Canada, which is popular with conservative politicians and commentators who don't want to admit that most Canadians have been badly hurt by their policies.

A second myth is that we can reduce income inequality without asking corporations and the wealthy to pay their fare share. As the OECD study makes clear, increasing the tax paid by large corporations and the wealthy is a first step to reducing income inequality. Until the wealthy and large corporations pay their share, there will not be the funds required for the programs and services that low and middle income Canadians need to get ahead.

"The OECD is hardly a radical organization," says James Clancy, National President of the National Union of Public and General Employees (NUPGE). The National Union has been running its All Together Now! campaign about income inequality for over four years.

"OCED members are governments committed to free market economies. Its priorities include restoring confidence in markets. The fact such an organization is recommending higher taxes for corporations and the wealthy shows how bad inequality has become." said Clancy.

The National Union of Public and General Employees (NUPGE) is one of Canada's largest labour organizations with over 340,000 members. Our mission is to improve the lives of working families and to build a stronger Canada by ensuring our common wealth is used for the common good. NUPGE